MAHARASHTRA BUDGET
ANALYSIS
(2022-23)
OVERVIEW OF THE BUDGET:
• The Gross State Domestic Product (GSDP) of Maharashtra for 2023-24 (at current prices) is
projected to be Rs 38,79,792 crore, amounting to growth of 10% over 2022-23.
• Expenditure (excluding debt repayment) in 2023-24 is estimated to be Rs 5,47,450 crore, an
increase of 3.6% over the revised estimates of 2022-23. In addition, debt of Rs 54,558 crore will
be repaid by the state.
• Receipts (excluding borrowings) for 2023-24 are estimated to be Rs 4,51,949 crore, an increase
of 4.3% as compared to the revised estimate of 2022-23. In 2022-23, receipts (excluding
borrowings) are estimated to increase by Rs 27,497 crore (increase of 6.8%) at the revised stage.
• Revenue deficit in 2023-24 is estimated to be 0.4% of GSDP (Rs 16,122 crore), lower than the
revised estimates for 2022-23 (0.6% of GSDP). In 2022-23, the revenue deficit is expected to be
lower than the budget estimate (0.7% of GSDP).
• Fiscal deficit for 2023-24 is targeted at 2.5% of GSDP (Rs 95,501 crore). In 2022-23, as per the
revised estimates, fiscal deficit is expected to be 2.7% of GSDP, higher than the budget estimates
(2.5%) for the year.
POLICY HIGHLIGHTS :-
• Income transfers for farmers: The Namo Shetkari Mahasanman Nidhi Scheme will provide an
annual amount of Rs 6,000 per farmer, and seeks to benefit 1.2 crore farmer families. The Scheme
has a proposed outlay of Rs 6,900 crore in 2023-24.
• Women: Girls born in families with an annual income below one lakh rupees will receive grants at
various stages of completing education, and will receive a grant of Rs 75,000 on attaining age of
18. A 50% concession will also be provided in state transport bus tickets for women.
• Tax changes: Profession tax limit for women will be increased from Rs 10,000 to Rs 25,000. VAT
on Aviation Turbine Fuel (ATF) will be reduced from 25% to 18%.
• Amnesty: An amnesty scheme for waiving taxes payable prior to the implementation of GST has
been announced. It proposes a full waiver for arrears up to two lakh rupees, and an 80% waiver
for arrears between Rs 50 lakh and two lakh rupees. The Scheme will apply to arrears pending as
of May 1, 2023.
BUDGET ESTIMATE FOR
2023-24
• Total expenditure (excluding debt repayment) in 2023-24 is targeted at Rs
5,47,450 crore. This is an increase of 3.6% over the revised estimate of 2022-
23. This expenditure is proposed to be met through receipts (excluding
borrowings) of Rs 4,51,949 crore and net borrowings of Rs 76,649 crore.
Total receipts for 2023-24 (other than borrowings) are expected to register an
increase of 4.3% over the revised estimate of 2022-23.
• Revenue deficit in 2023-24 is estimated to be 0.4% of GSDP (Rs 16,122
crore), lower than the revised estimates for 2022-23 (0.6% of GSDP). Fiscal
deficit for 2023-24 is targeted at 2.5% of GSDP (Rs 95,501 crore), lower than
the revised estimates for 2022-23 (2.7% of GSDP).
EXPENDITURE IN 2023-24
• Revenue expenditure for 2023-24 is proposed to be Rs 4,65,645 crore, an increase of 3% over the
revised estimate of 2022-23. This includes the expenditure on salaries, pensions, interest, grants, and
subsidies.
• Capital outlay for 2023-24 is proposed to be Rs 73,901 crore, an increase of 2% over the revised
estimate of 2022-23. Capital outlay indicates the expenditure towards creation of assets. In 2022-
23, loans and advances given by the state are expected to be Rs 4,944 crore, which is Rs 2,530 crore
higher than budgeted (an increase of 105%).
• Committed expenditure: Committed expenditure of a state typically includes expenditure on
payment of salaries, pensions, and interest. A larger proportion of budget allocated for committed
expenditure items limits the state’s flexibility to decide on other expenditure priorities such as capital
outlay. In 2023-24, Maharashtra is estimated to spend Rs 2,50,156 crore on committed expenditure,
which is 56% of its estimated revenue receipts. This comprises spending on salaries (32% of revenue
receipts), pension (12%), and interest payments (11%). In 2022-23, as per the revised estimates, 51%
of revenue receipts were spent towards committed expenditure, lower than in 2021-22 (56%).
RECEIPTS IN 2023-24
• Total revenue receipts for 2023-24 are estimated to be Rs 4,49,523 crore, an increase of 4% over the revised estimate of 2022-
23. Of this, Rs 3,22,351 crore (72%) will be raised by the state through its own resources, and Rs 1,27,172 crore (28%) will
come from the centre. Resources from the centre will be in the form of state’s share in central taxes and grants, which are
14% of revenue receipts each.
• Devolution: In 2023-24, state’s share in central taxes is estimated at Rs 64,525 crore, an increase of 8% over the revised
estimate of 2022-23.
• Grants from the centre in 2023-24 is estimated at Rs 62,647 crore, a decrease of 14% over the revised estimates for 2022-23.
• State’s own tax revenue: Maharashtra’s total own tax revenue is estimated to be Rs 2,98,181 crore in 2023-24, an increase of
8% over the revised estimate of 2022-23. Own tax revenue as a percentage of GSDP is estimated at 7.7% in 2023-24,
marginally lower than the revised estimates for 2022-23 (7.8%). As per the actual figures for 2021-22, own tax revenue as a
percentage of GSDP was 7.1%.
• In 2023-24, State GST is estimated to be the largest source of own tax revenue (46% share). State GST revenue is
estimated to increase by 8% over the revised estimates of 2022-23. The receipt on this account increased by 5% in
2022-23 at the revised stage.
• Stamp duty and registration fees account for 15% of own tax revenue, and increased by 25% in 2022-23 at the revised
stage. In 2023-24, receipts on this account are expected to increase by 13%
DEFICITS, DEBT, AND FRBM
TARGETS
Revenue deficit: It is the difference of revenue expenditure and revenue receipts. A revenue deficit implies that the
government needs to borrow to finance those expenses which do not increase its assets or reduce its liabilities. The
budget estimates a revenue deficit of Rs 16,122 crore (or 0.4% of the GSDP) in 2023-24.
Fiscal deficit: It is the excess of total expenditure over total receipts. This gap is filled by borrowings by the
government and leads to an increase in total liabilities. In 2023-24, the fiscal deficit is estimated to be 2.5% of GSDP.
For 2023-24, the central government has permitted fiscal deficit of up to 3.5% of GSDP to states, of which 0.5% of
GSDP will be available only upon carrying out certain power sector reforms. As per the revised estimates, in 2022-23,
the fiscal deficit of the state is expected to be 2.7% of GSDP. Fiscal deficit is projected to be lowered to 2% of GSDP
by 2025-26.
Outstanding liabilities: Outstanding liabilities are the accumulation of total borrowings at the end of a financial year,
it also includes any liabilities on public account. At the end of 2023-24, the outstanding liabilities is estimated to be
18.2% of GSDP, marginally higher than the revised estimate for 2022-23 (18.1% of GSDP). The outst
Outstanding Government Guarantees: Outstanding liabilities of states do not include a few other liabilities that are
contingent in nature, which states may have to honour in certain cases. State governments guarantee the borrowings
of State Public Sector Enterprises (SPSEs) from financial institutions. As of March 31, 2022, the state’s outstanding
guarantee is estimated to be Rs 51,263 crore, which is 1.3% of Maharashtra’s GSDP in [Link] liabilities have
risen as compared to 2019-20 level (16.5% of GSDP).
COMPARISON OF STATES’
EXPENDITURE ON KEY
SECTORS
• Education: Maharashtra has allocated 16.6% of its expenditure on education in 2023-24.
This is higher than the average allocation for education by states in 2022-23 (14.8%).
• Health: Maharashtra has allocated 4.6% of its total expenditure towards health, which is
lower than the average allocation for health by states (6.3%).
• Agriculture: Maharashtra has allocated 5.9% of its expenditure on agriculture. This is
marginally higher than the average allocation for agriculture by states (5.8%).
• Roads and bridges: Maharashtra has allocated 5.8% of its expenditure towards roads and
bridges. This is higher than the average allocation towards roads and bridges by states (4.5%).
• Irrigation: Maharashtra has allocated 3.7% of its total expenditure towards irrigation, which
is higher than the average expenditure on irrigation by states (3.5%).
• Urban Development: Maharashtra has allocated 3.8% of its total expenditure towards urban
development, which is higher than the average allocation by states (3.5%).
COMPARISON OF STATES’
EXPENDITURE ON KEY
SECTORS
• Education: Maharashtra has allocated 16.6% of its expenditure on education in 2023-24.
This is higher than the average allocation for education by states in 2022-23 (14.8%).
• Health: Maharashtra has allocated 4.6% of its total expenditure towards health, which is
lower than the average allocation for health by states (6.3%).
• Agriculture: Maharashtra has allocated 5.9% of its expenditure on agriculture. This is
marginally higher than the average allocation for agriculture by states (5.8%).
• Roads and bridges: Maharashtra has allocated 5.8% of its expenditure towards roads and
bridges. This is higher than the average allocation towards roads and bridges by states (4.5%).
• Irrigation: Maharashtra has allocated 3.7% of its total expenditure towards irrigation, which
is higher than the average expenditure on irrigation by states (3.5%).
• Urban Development: Maharashtra has allocated 3.8% of its total expenditure towards urban
development, which is higher than the average allocation by states (3.5%).
COMPARISON OF 2021-22
BUDGET ESTIMATES AND
ACTUALS
Please view the linked Excel Sheet
